Taxes and the Economy
Taxes = “Unrestricted revenues” Pays for General and Education Funds 45% of total budget 35% federal funds (higher ) 25% dedicated funds
Two Major Modern Reforms 1970: Business Profits Tax 1993: Business Enterprise Tax
Business Profits Tax 1970: Gov. Walter Peterson Ring around New Hampshire Taxes on Capital and Investment Maine = N.H. = Vermont Barrier to Investment
Pro-Growth Reform Eliminate 13 Different Taxes Taxes on capital, stock, investment Business Profits tax Growth incentive Tax Elimination
Business Enterprise Tax 1993: Gov. Steve Merrill High rate of profits tax (8%) 1% of business, 70% of tax Numerous credits, exceptions
Revenue Neutral Reduce BPT 12% (from 8% to 7%) Increase BPT exemption Repeal special exceptions Repeal Savings Bank Tax Repeal Corporate Franchise Tax New BET at low 0.25% rate BET credit against BPT
Right Way/Wrong Way Trust is an issue More money or reform Transparency Separate Hike from Change Sales Tax, LLC Taxes
Considerations Jobs, Jobs, Jobs Competitive Advantage Capital is free Picking Winners Because we can